In a remarkable turn of events, South Korean automakers Hyundai Motor Co. and Kia Corp. have been experiencing a surge in their brand power worldwide, resulting in a substantial increase in the prices of their flagship vehicle models, particularly in the United States.

This remarkable transformation is shifting the paradigm away from perceiving these Korean brands as “budget-friendly cars” reliant on sales and promotions towards acknowledging their value on par with their international counterparts.

A recent analysis by Maeil Business Newspaper on Hyundai Motor’s business reports over the past five years unveiled this trend. The average selling prices of Hyundai Motor and Kia vehicles have shown a disproportionately higher rate of increase in overseas markets compared to the same models sold in Korea. As of the first half of this year, Hyundai Motor’s passenger car prices witnessed a 7.97 percent increase overseas over the previous year, outpacing the 3.2 percent growth in the domestic market by more than double.

The spotlight remains on the U.S. where seven out of ten top-selling vehicles fall into the category of sports utility vehicles (SUVs) and recreational vehicles (RVs). The average overseas selling price increase of these leisure-oriented vehicles over the last five years was 3.4 times higher than that observed in Korea.

An example is Hyundai Motor’s midsize SUV, the Palisade, which is currently retailed at Wayne Dealership in New Jersey with the highest specification model priced between $54,215 and $54,270 (approximately 70.36 million won to 70.51 million won) In comparison, the top-tier Palisade 3.8 gasoline AWD Black Edition is sold in Korea for a range of 47 million won to 48 million won.

This disparity in overseas and domestic prices underscores the evolving global perception of Hyundai Motor and Kia brands and suggests the dramatic upgrade in their market position overseas.

By Park So-ra and Minu Kim

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]